A fleet management system has several key features and components. It allows companies to track their fleet vehicles using GPS or other electronic tracking devices. It can also monitor vehicles' mechanical systems and diagnostics data as well as driver behavior. Fleet management software is used to manage all aspects of a company's vehicles from acquisition to disposal, including tasks, processes, maintenance scheduling, and reporting. An effective fleet management program establishes policies for acquiring, maintaining, replacing and disposing of vehicles in a cost-effective manner. It aims to optimize costs at all stages of a vehicle's lifecycle.

1. FEATURES OF A FLEET
MANGEMENT SYSTEM

2. Why Fleet Management?
 Fleet vehicles are groups of automobiles with a
single owner, typically a company or corporation,
rather than an individual or family.
 Companies with fleet vehicles are under constant risk,
thanks to their drivers and vehicles themselves.
 Fleet management is a term used to encompass the
management of any/all aspects relating to a
company's vehicle from the allocation of resources to
fuel economies.

3. Characteristics
 Vehicle tracking
The most basic function in all Fleet
Management systems.Vehicle Tracking
Systems are electronic devices installed in
vehicles to enable vehicle owners or third
parties to track the location of a vehicle. They
use GPS modules or Cellular Triangulation
Platform.

4. Characteristics Contd…
 Mechanical Diagnostics
Advanced Fleet management systems can connect to
the vehicle's onboard computer and gather data for
the user.Details such as mileage, fuel consumption,
and much more, are gathered into a global statistics
scheme.
 Driver Behavior
By combining received data from the Vehicle
Tracking system and the onboard computer, it is
possible to form a profile for any given driver.

5. Characteristics Contd…
 Fleet Management Software
Fleet management software enables people to accomplish a
series of specific tasks in the management of any or all aspects
relating to a companies fleet of vehicles. These specific tasks
encompass all operations from vehicle acquisition to disposal.
It functions as a complex information system. A main function
of fleet management software is to gather, store, process,
monitor, report on and export information. Fleet management
software should be able to manage processes, tasks and events,
for example notification of routine maintenance, due dates, tax
and insurance due dates and driver licence management. Many
companies provide fleet management software. Fle

6. Components of an Effective Fleet
Management Program
An effective fleet management program should include policies
and procedures on acquisition, maintenance, replacement and
disposal of vehicles.
 ACQUISITION
Procedures supplementing the organization’s procurement
policy should be established on how vehicles will be
acquired and what type of vehicles should be acquired
based on their intended use. The goal of optimized
acquisition is to obtain the lowest possible price and the
highest possible quality. An organization may need to
make a determination on what type of vehicle is needed. A
general rule of thumb is that used vehicles may require
more frequent and costly maintenance than new vehicles.

7. Components of FMS Contd…
 MAINTENANCE
Local officials should establish preventive maintenance intervals, based on
local driving conditions and manufacturer's recommendations, for each
type of vehicle and each type of maintenance service. Overly frequent or
delinquent preventive maintenance intervals are counterproductive to
controlling costs. Standards of acceptable quality should also be set for
vehicle parts and fluids used.
As with all other areas of fleet management, there is no one maintenance
template that will cover all vehicles in all local governments. However, an
effective scheduled maintenance program will hold down maintenance
costs. Preventive maintenance is the key to avoiding the repair or
replacement of costly major vehicle components such as engines,
transmissions and drive trains.

8. Components of a FMS Contd…
 REPLACEMENT
Fleet managers should establish a vehicle replacement
standard. Different replacement standards may be considered
depending on the results of the analysis and the different
vehicle types and usage patterns. A replacement standard can
be developed by analyzing the costs associated with a vehicle
and identifying the point when, on average, a vehicle is
reasonably depreciated but not yet incurring significant
maintenance costs. By replacing vehicles at this point, an
organization can usually avoid escalating maintenance costs
and optimize vehicle resale value.

9. Components of a FMS Contd…
 DISPOSAL
Fleet managers should analyze the various
methods for the disposal of unneeded vehicles
and determine the most cost effective method
of disposal for their purposes. The goal is to
yield the highest salvage value of the vehicles.
Methods of disposal include public auction,
sealed bids or trade-in.

10. Establishing an Effective Fleet
Management System
 The establishment and effective administration of a fleet management
program can have a positive impact on the cost effectiveness and efficiency
of an organization’s fleet operation.
 Because each organization’s fleet and usage is unique, a universal
management guide does not exist that can be applied to all types of fleets
for every organization.
 An effective fleet management program for any organization should
establish guidelines for the acquisition, maintenance, replacement and
disposal of vehicles. Fleet managers should put together a fleet
management policy that clearly covers all of the guidelines established.
This policy should be monitored for compliance by the heads of each of
the individual departments. Essential to this oversight is the maintenance of
pertinent records such as vehicle daily mileage logs, fuel usage logs, and
the cumulative costs of parts, labor and overhead by a vehicle over its life.
 This brochure is designed to help managers craft an effective fleet
management system best suited to their individual needs.